MANILA, Philippines - The Philippine Stock Exchange (PSE) expects to welcome as much as 10 new firms in the bourse this year, surpassing last year’s tally, as the stock market continues its bull run.
Initial public offerings (IPO) will form part of the projected P200 billion that will be raised through share sales in the local stock exchange this year, the PSE’s top executive said.
“We expect seven to 10 IPOs and listing by way of introduction,†PSE president and CEO Hans B. Sicat told reporters yesterday on the sidelines of the Philippine Investment Forum organized by Euromoney.
Coupled with follow-on offering transactions of already listed firms, Sicat said the local bourse will facilitate capital raising that will generate around P200 billion in funds, about the same level as last year.
In 2012, capital proceeds from private placement, stock rights offerings and follow-on offerings hit P50.38 billion, P52.07 billion and P92.64 billion, respectively.
Five companies conducted their IPOs, raising a total of P23.99 billion from the market, while two listed firms listed by way of introduction.
Meanwhile, the PSE is encouraging more activities in the local bourse through the stock borrowing facility.
“We are hoping that stock borrowing as a product will be used more by the players,†Sicat said.
“We hope players and various retirement funds will lend a portion of their stock for market activity,†Sicat said, adding that the value of stock borrowing transactions reached just a little over P1 billion last year.
It showed the stock borrowing transactions accounted for a little portion of the P1.77 trillion worth of value turnover last year.
“For many exchanges, stock borrowings account for between 10-20 percent of total value,†Sicat said, adding that encouraging more of such transactions will stimulate more market activity.